Internet Service Providers operate some of the oldest businesses found on the Netor at least on the modern-day Netbut the nature of how they compete hasn't changed much over the years. ISPs deploy backbone connections designed to deliver Internet access at high speeds. Cahners In-Stat Group reports that the number of backbone connections will have a compound annual growth rate of close to 23 percent heading into 2004.

Interestingly, ISPs continue to favor T1 and T3 lines. According to research from Cahners In-Stat Group, demand for these connections is high and is expected to remain so, driven by the insatiable desire for more bandwidth for several years to come.

Sprint and UUnet remain the leaders among backbone technology providers. "T1 and T3 connections will continue to play an important role in the backbone connection market," says Daryl Schoolar, an analyst at Cahners. "Both connection-speed markets will have a compound annual growth rate of around 21 percent between 1999 and 2004."

Even as these connections continue to be favored, ISPs are looking to other advantages. For example, Cahners research shows that nearly all ISPs are using more than one carrier to connect to the Internet, and that bandwidth prices are continuing to decline sharply.

Sebastian Rupley is Editorial Director for PCMagCast, PC Magazine's channel for live Web seminars and online events on tech topics for consumers and small businesses. Previously, he was West Coast Editor of PC Magazine for over a decade, where he oversaw news and feature stories for the publication, and represented the brand on panels and at conferences on the West Coast. He also served as Features Editor of PC/Computing magazine, managing and promoting many noted technology journalists.
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